1. Project Preservation and Suitability RRHA June 2019
Nicki Whitley
Project Preservation and Suitability
RRHA
June 2019

2. Project Preservation/Prepayment
Borrowers must obtain approval before prepaying their loans
Borrowers eligible to request prepayment: December 15, 1989
Must be a written request
Evaluate need of the property
Incentives, subject to the availability of funding
Pay in full or sell, with restrictions or without
UL dated 4/28/15 Management of Loan Payoffs in MFH
Vouchers
To protect the supply of affordable housing and to ensure that tenants of multi-family housing properties do not suffer from rent overburden or the loss of their units
All loans approved prior to December 15, 1989, are subject to prepayment regulations and must file a prepayment application to request payoff of the loan(s). Loans made on or after December 15, 1989, to build or acquire new multi-family housing units are prohibited from prepayment.
180 days before payoff date allows the Agency time to review the request, complete the application analyses, and offer incentives, if appropriate,
If all required procedures can be completed in fewer than 180 days, prepayment may occur at an earlier date

3. Project Suitability Handbook 3, Chapter 6 – rewritten in 2018
Review classification, property and marketing factors and assess need (see table next slide)
Look at ownership, management, health and safety issues, physical findings, transition events, cost to rehab, market demand, vacancy rates, economic viability, and environmental influences.
End result: protect the tenants, ensure government funds (RA) are used effectively and efficiently
To protect the supply of affordable housing and to ensure that tenants of multi-family housing properties do not suffer from rent overburden or the loss of their units
All loans approved prior to December 15, 1989, are subject to prepayment regulations and must file a prepayment application to request payoff of the loan(s). Loans made on or after December 15, 1989, to build or acquire new multi-family housing units are prohibited from prepayment.
180 days before payoff date allows the Agency time to review the request, complete the application analyses, and offer incentives, if appropriate,
If all required procedures can be completed in fewer than 180 days, prepayment may occur at an earlier date

5. Nicki Whitley
Rural Development
Multi-Family Housing Specialist
Illinois State Office
Office: